electricity and water sector in oman 3 rd oman economic forum april 2012

1 Public Authority for Electricity and Water

Public Authority for Electricity & Waterللكهـرباء العـامة الهيئة

والميـاه

Electricity and Water Sector in Oman

3rd Oman Economic ForumApril 2012


والميـاه

BY:MOHAMMED AL MAHROUQIPAEW CHAIRMAN



والميـاهAgenda Introduction about PAEW Water sector in Oman Electricity Sector Renewable Energy



والميـاهPAEW strategic objectivesTo secure the production of potable water in the Unrelated

Water Sector in accordance with the Oman standards and proportionate to the expansion of development and population growth.

To activate the Government's policy in respect of securing electricity supply to the greatest portion of society.

To activate and consolidate Government policy in respect of the development of both the unrelated water and the electricity and related water sectors and to promote them and utilise technology in these two areas.

To encourage the private sector to invest in both the unrelated water and the electricity and related water sectors.

To develop human resources in the Authority.



والميـاهPAEW Water Coverage Area

Dhofar Region Salalah

Sohar

Muscat

Musandam Governorate

Al Buraimi Governorate

Ad Dhakhliyah Region

Al Wusta Region

Sur

Al Batinah Region

Ad Dhahirah Region

Muscat Governorate

Areas not included in PAEW’s service area

Barka

Ash Sharqiyah Region



والميـاهPAEW’s water supply system

Muscat Governorate Regional areas

Note: * Excluding Dhofar region and Sohar Wilayat

Population: 735,000 230 km of transmission pipeline 2,106 km of distribution

pipeline Approximately 143,000

consumer accounts in 2010

Population: 1,709,000* 1,900 km of transmission

pipeline 2,900 km of distribution

pipeline Approximately 94,000

consumer accounts in 2010

Total Consumption 102 Mm3/year



والميـاهPAEW’s water supply system

Seawater desalination represents 70% of the total drinking water production, of which 10% is produced by PAEW through approximately 30 RO

Wells provide 30% of the total water supply in the country (less than 10% in Muscat)

90% of the water is distributed through pipes and 10% through tankers

Public Authority for Electricity and Water7


Growth in Water Demand andوالميـاهSupply

Source - Strategic Business Planning: Master Plan , PAEW- (VEOLIA Water) , Version 0.1, Jan 2012

2012 2013 2014 2015 2020 2025 2030 2035-200,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Total Available Capacity Surplus/Deficit Demand: Average Day in Peak Week

Capa

city

/Dem

and

(m3/

d)

Interconnected Zone



والميـاهCapital Program - Infrastructure


والميـاهIWP Water projects : - Al Ghubra IWP, capacity of 191,000 M3/d , COD

by 2014.- Al Suwayq IWP, capacity of 225,000 M3/d ,

COD by 2016.- Quraiyat IWP, capacity of 180,000 m3/d, COD

2018.- Wadi Dhiqa Treatment Plant, Capacity of

67,000 m3/d, COD by 2015.

Total Investment required 720 M USD

9

Public Authority for Electricity and Water


- Oman Electricity Business StructureوالميـاهMIS

10

Oman Power & WaterProcurement Company

SAOC Muscat Electricity Distribution Company SAOC

Majan Electricity Company SAOC

Mazoon Electricity Company SAOC

PWP pays Production Facilities for •Capacity and Output in accordance with terms of PPA/PWPA•Ancillary Services

United Power Company SAOG

Al Rusail Power Company SAOC

Wadi Jizzi Power Company SAOC

Al Kamil Power Company SAOG

ACWA Power Barka SAOG

Al Ghubrah Power & Desalination

Company SAOC

Others (Sohar II, Barka III and Sur)

Direction of payments

Discos pay PWP for•bulk purchases of electricity charged at a cost reflective Bulk Supply Tariff (BST);•Electricity BST includes PWP’s costs of electricity procurement activities

Oman Electricity Transmission Company

SAOC

Production Facilities & Others pay OETC for•Connection to Transmission System

Discos pay OETC for •Connection to OETC’s Transmission System (Distribution business)•Use of OETC’s Transmission System (Supply business)

Water Departments

Water Departments pay PWP•for bulk purchases of desalinated water charged at a cost reflective Bulk Supply Tariff (BST);•Water BST includes the PWP’s costs of water procurement activities

Sohar Power Company SAOC

All intra sector transactions: (i) regulated & (ii) cost reflective (no direct subsidy)

Subsidy

CustomersSMN Barka SAOG



والميـاهElectricity Sector - Ownership

Ministry of Finance

Electricity Holding Company SAOC

Oman Power and Water Procurement Company SAOC

Rural Areas Electricity Company SAOC

Wadi Jizzi Power Company

Ghubrah Power and Desalination Company

Oman Electricity Transmission Company

SAOC

Majan Electricity Company

Mazoon Electricity Company

Muscat Electricity Distribution Company

0.01 %

100 %

99.99 %

Remains in Government ownership

Slated for privatization

Key:

Private Investors Public Shareholding

ACWA Power Barka SAOG

65 % 35 %

Al Kamil Power Company65 % 35 %

United Power Company60 % 40 %

Sohar Power Company65 %

Rusail Power Company65%

Barka II Power Company65 %

3 %5

Barka III Power Company

Sohar II Power Company100 %

100 %

100 %

Sur Power Company

Sembcorb (Salalah IWPP)100 %

35 %

35 %

Dhofar Power Company SAOC



- Expected Electricity ConsumptionوالميـاهMIS

12

Projected CompoundGrowth Rate 8%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180

1000

2000

3000

4000

5000

6000

7000

Peak Demand MW

Projected Actual

Projected Com-pound Growth Rate 8%

Actual 2010

Actual 2011

2012 2013 2014 2015 2016 2017 2018

16.919.0

20.722.7

24.326.2

28.130.1

32.1

Projected Consumption TWh



والميـاهConsumption Breakdown - MIS

Agriculture & Fisheries;

0.187

Commercial; 3.030

Government; 1.925999999

99999

Hotels & Tourism;

0.018Industry; 1.232other; 0.11

Residential; 7.588

TWh (2010)



والميـاه

14

Privatization Trend in Electricity and Related water Sector (MW of generation capacity)

April 25

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

1000

2000

3000

4000

5000

6000

7000

8000Sur

Barka III

Sohar II

Salalah - IWPP

Barka II

Rusail

Sohar I

Salalah - NPS

Barka I

Al Kamil

Manah - Phase 2

Manah - Phase 1

2.6 Billion Omani Rials Private Sector Investment(6.7 Billion USD)100 per cent Private Sector Ownership



والميـاهFuture Key challenges

Rapid Growth

Subsidized electricity permitted tariff

Fuel availability & cost Uncertainty

15


والميـاه

New IPP projects :

- New green-field IWPP plant in Salalah, capacity of 445 MW, COD 2012

- Two new green-field IPPs in Barka & Sohar , capacity of 745 MW each, COD by 2013.

- New green-field IPP plant in Sur, capacity of 2000 MW, COD 2014

- New green-field IPP plant in Musandam, capacity of 120 MW, COD 2014

Projects under study:-Duqum IWPP- Salalah IPP (Phase II)

OPWP 7-year statement is available on www.omanpwp.com

16



والميـاه

Renewable Energy in Oman The Government of Oman has clearly stated its support for the implementation of

renewable energy initiatives in Oman

A ministerial committee has been established to oversee and coordinate efforts

The Authority for Electricity Regulation (AER) commissioned a study to investigate the potential for renewable energy projects in the electricity sector. The full study is available on AER web site www.aer-oman.org

The Public Authority for Electricity and Water is taking steps to implement solar and wind energy projects, to coordinate efforts to identify the need for research and development and to identify the need for policy and other support mechanisms

Oman Power and Water Procurement (OPWP) is collecting data from two sites (at Manah and Adam) to support development of future solar projects. Preliminary data available on OPWP web site, www.omanpwp.com.

17

http://www.omanpwp.com/



والميـاه

Study on Renewable Energy Resources - 2008

Objectives:To provide an overview of renewable sources

of energy in Oman & the potential use of renewable energy for electricity production

To provide a platform for developing renewable energy policies for Oman

Findings:Significant potential from: Solar &WindLimited potential from: Biogas, Geothermal

&Wave

18



والميـاهLarge Scale Solar Power Project

Feasibility Study

• Market structure and regulatory framework

• Selection of optimum location

• PPA structure

• Confirmation of current power capacity

Competition Process

• Tendering process

19



والميـاهRE way forwarded

20

Policy & Strategy

Project Implementation

Capacity Building

1. Developing Policy for R.E development

2. R & D Policy

3. Regulatory review

1. Pilot Projects (RAECO)

2. 100 – 200 MW Solar Plant (Grid Connected)

3. Wind Monitoring Program

4. Wind farm

5. Green Buildings

R & D Industrial Human Resources

1. R.E Desalination

2. Hybrid Solutions

3. Solar Cooling

4. Focused research on specific technologies

1. Row material extractions

2. Manufacturing added value

1. University Program

2. Engineering and O & M Skills

3. Reservoir & Development

4. Utilities experience

Benchmark/Knowledge sharing



Key Strategic Initiatives undertaken byوالميـاهPAEWEnergy Balance & Fuel Diversity:

Developing Long term electricity Plan Diversifying Sources of Fuel Promoting fuel efficiency – conversions to CCGT

Renewable Energy & Efficiency Initiatives: Large Scale Solar Plant Pilot Projects Energy Efficiency & Conservation

Research & Development


والميـاه


THANK YOU

electricity and water sector in oman 3 rd oman economic forum april 2012

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